Was that recently? The reason I ask that is because before '99 it was easier to get these bikes registered.
It didn't happen to me personally so maybe it's just storys. I do know they wanted to do a VIN verification on my bike and I freaked out with all the storys I heard about the CHP and how they black flag the VIN. I had to do an end run around them and got it titled and registered without them seeing the bike.